São Paulo, August 14, 2008

2Q08

Results Presentation

2

Information and Projection

This notice may contain estimates for future events. These estimates merely reflect the expectations of

the Company’s management, and involve risks and uncertainties. The Company is not responsible for

investment operations or decisions taken based on information contained in this communication. These

estimates are subject to changes without prior notice.

This material has been prepared by TAM S.A. (“TAM“ or the “Company”) includes certain forward-

looking statements that are based principally on TAM’s current expectations and on projections of future

events and financial trends that currently affect or might affect TAM’s business, and are not guarantees

of future performance. They are based on management’s expectations that involve a number of

business risks and uncertainties, any of each could cause actual financial condition and results of

operations to differ materially from those set out in TAM’s forward-looking statements. TAM undertakes

no obligation to publicly update or revise any forwardlooking statements.

This material is published solely for informational purposes and is not to be construed as a solicitation

or an offer to buy or sell any securities or related financial instruments. Likewise it does not give and

should not be treated as giving investment advice. It has no regard to the specific investment objectives,

financial situation or particular needs of any recipient. No representation or warranty, either express or

implied, is provided in relation to the accuracy, completeness or reliability of the information contained

herein. It should not be regarded by recipients as a substitute for the exercise of their own judgment.

3

PreviousPeriod

CurrentPeriod

J F MAM J J A S OND J F MAM J J A S OND J F MAM J J A S OND J F MAM J J80

85

90

95

100

105

110

115

120

125

130

Domestic Market - Variation(vs previous period)

The domestic market grew 10% from January to

July 2008

Source: ANAC

Accum. market

growth 2006

12%

Accum. market

growth 2005

19%

Accum. market

growth 2007

12%

Accum. market

growth 2008

10%

20072005 2006 2008

4

PreviousPeriod

Market

TAM

J F MAM J J A SOND J F MAM J J A SOND J F MAM J J A SOND J F MAM J J40

60

80

100

120

140

160

180

200

International Market - Variation(vs previous period)

The international market (among Brazilian carriers)

is recovering and grew 38% …

Source: ANAC

Accum. Market

growth 2008

38%

Acum TAM 2006

41%

Acum TAM 2007

71%

Acum TAM 2005

40%

Acum TAM 2008

44%

Accum. market

growth 2005

7%

Accum. market decrease 2006

30%

Accum. market

decrease 2007

5%

20072005 2006 2008

5

…with higher growth anticipated for Brazilian carriers

due to the unbalance in the bilateral agreements…

Source: ANAC annual report

* estimates

58.2%

41.8%

57.7%

42.3%

66.9%

33.1%

71.2%

28.8%

69.8%

30.2%

2004 2005 2006 2007 June2008*

0

20

40

60

80

100%

% international passenger

BrazilianCarriers

IntlCarriers

6

…observed in many countries, as the example

between Brazil and USA

77

107

147

2821

357

10535

Italy

England

Germany

France

Spain

USA

1414

1414

2121

3030

5151

126*126*

150 100 50 0 50 100 150

Weekly Frequencies

* 21 frequencies limited to the cities in the north, northeast and central west regions of Brazil and/or Belo Horizonte

Brazilian Carriers Foreign Carriers

Available space on bilateral Operated by Brazilian Carriers Operated by Foreign Carriers

7

We are both domestic and international market

leaders

TAM’s Domestic Market Share*

Source: ANAC

* RPK – Revenue passenger kilometer

TAM’s International Market Share* – Among Brazilian carriers

33,0%35,8%

48,0% 48,9% 49,30% 48,2%51,1%

43,5%

2003 2004 2005 2006 2007 Jan - Jul 2008 2Q08 jul/08

12,0% 14,3%

37,5%

67,5%70,9%

74,0% 72,5%

18,8%

2003 2004 2005 2006 2007 Jan - Jul 2008 2Q08 jul/08

8

Steady strengthening of our fleet

Delivery of 3 A320 (versus 1Q08)

Redelivery of 4 F100 (versus 1Q08)

Fleet unification and new network launch of the Paraguayan company

Transportes Aereos Mercosur S.A. (TAM Airlines)

Operational efficiency

12.7 block hours per aircraft per day

13.6 block hours per aircraft per day. considering only the operating fleet

Average total load factor of 70.4% in 2Q08

Highest domestic punctuality, with accumulated average in 2008 of 84.57%

Agreements:

Memorandum of understanding with Air Canada and Swiss International Air

2Q08 Highlights (1/2)

9

2Q08 Highlights (2/2)

Sarbanes-Oxley certification renewed

Strengthening of our network

Authorization to fly to Lima, Peru

New nonstop flights to Buenos Aires, including from Brasília

Awards Received

Awarded Latin America best 2007 deal for bond issues at 7.375%

One of the best in Brazil for corporate governance by IR Global Ranking 2008

Service Excellence Award from Consumidor Moderno Magazine

2008 Top of Mind among airlines in Rio Grande do Sul

Valor 1,000 as the best Company in the Transportation and Logistics sector

Share Buy-back program

228.700 thousand shares bought-back

10

156

196

531

1,170

226

256

603

1,530

2Q07 2Q08

2,054

2,615

0

500

1,000

1,500

2,000

2,500

3,000

Gross Revenue (R$ M) Domestic passenger revenue

grew 31%

RPK increased 8%

ASK increased 14%

International passenger revenue

grew 13%

RPK increased 29%

ASK increased 22%

Cargo revenue grew 31%

Other revenue grew 45%

Our gross revenue increased 27%...

27%

Domestic Pax International Pax Cargo Other

11

...and total RASK increased 9.5%...

RASK total ¹ ²

RASK scheduled domestic²

Domestic load factor - %

Yield scheduled domestic³

RASK scheduled international²

International load factor - %

Yield scheduled international³

Yield scheduled international³

(USD cents)

2Q07 1Q08 2Q082Q08 vs

2Q07

2Q08 vs

1Q08

R$ Cents

1 Includes charter. cargo and Other revenues. net of taxes

2 Net of taxes

3 Gross of taxes

16.80

15.26

71.9

22.25

12.30

69.1

17.83

9.26

16.38

15.37

69.9

23.09

11.39

76.9

14.82

8.47

18.40

17.66

68.1

27.23

11.48

73.4

15.64

9.82

9.5

15.7

-3.9 p.p.

22.4

-6.7

4.3 p.p.

-12.3

6.1

12.3

14.9

-1.8 p.p.

17.9

0.8

-3.5 p.p.

5.5

16.0

6.39 6.51 7.21 12.9 10.7 RASK scheduled

international² (USD cents)

12

...and the total CASK increased 8.4%...

CASK

CASK excl-fuel

2Q07 2Q08

16.5217.91

0

5

10

15

20

Total CASKBR GAAP - R$ cents

2Q08 vs 2Q07

-3.4%

8.4%

13

...increasing the spread (RASK-CASK)...

2Q07 2Q08

16.8016.52

18.40

17.91

15

16

17

18

19

RASK/CASK (R$ Cents)

BR GAAP

RASK

CASK

EBITMargin

Spread

1.7%

0.28

2.7%

0.49

14

...impacting our margins in BR GAAP...

Margin over net revenue

2Q07 2Q08

252

301

0

100

200

300

400

EBITDAR - R$ M

19%

13% 12%

2Q07 2Q08

33

67

0

20

40

60

80

EBIT - R$ M

103%

2%

3%

2Q07 2Q08

-29

50

-40

-20

0

20

40

60

Net Income - R$ M

-1%

2%

BR GAAP

15

...and in US GAAP...

Margin over net revenue

US GAAP

2Q07 2Q08

239

277

0

50

100

150

200

250

300

EBITDAR - R$ M

16%

12% 11%

2Q07 2Q08

69

92

0

20

40

60

80

100

EBIT - R$ M

34%

3%4%

2Q07 2Q08

69

214

0

50

100

150

200

250

Net Income - R$ M

4%

9%

209%

16

...increasing our earnings per share

2Q07 2Q08

0.46

1.42

Earnings per shareUS GAAP (R$)

2Q07 2Q08

-0.19

0.33

Earnings per shareBR GAAP (R$)

17

BR GAAP Leasing Income

Taxes

Others US GAAP

50

261

-84 -13

214

0

100

200

300

400

Net Profit Reconciliation to US GAAP

46 aircrafts are reclassified

as capital leases as per

SFAS nº 13

The main difference between BR and US GAAP is

the accounting treatment of aircraft leasing

18

Our balance sheet remains solid

R$ million - BRGAAP 2008* 2007 2006 2005 2004

Cash (1) 2.009 2.607 2.453 995 297

Short-Term Debt (2) 837 1.005 363 216 204

Long-Term Debt (3) 1.301 1.345 895 425 399

Total Debt (A) = (2) + (3) 2.138 2.350 1.258 641 603

Shareholder's Equity (4) 1.539 1.527 1.449 760 191

Capitalization (B) = (3 + 4) 2.839 2.872 2.344 1.185 590

Aircraft and flight equipment leases** (5) 6.193 5.976 5.032 4.389 4.557

Total Debt Adjusted (C) = (A + 5) 8.331 8.326 6.290 5.030 5.160

Total Capitalization Adjusted (D) = (3 + 4 + 5) 9.032 8.848 7.376 5.574 5.147

Debt / Capitalization (A / B) 75% 82% 54% 54% 102%

Adjusted Debt / Adjusted Capitalization (C / D) 92% 94% 85% 90% 100%

Adjusted Net Debt / Adjusted Capitalization (C - 1) / (D) 70% 65% 52% 72% 94%

* LTM

** Aircraft and flight equipment leases of the last twelve months x 7

19

Our mix of international revenue reduced due to the

appreciation of Real and increase of domestic yield

34%

66%

31%

69%

2Q07 2Q080

20

40

60

80

100%

Revenue

(Passenger + Cargo)

Domestic

International

Dollar

exchangerate

Domestic

International

1.926

63%

37%

1.592

62%

38%

Approximately

50% of our costs

(including fuel) are

exposed to foreign

currencies

-17%

ASK proportion

20

-50%

50%

150%

250%

350%

Stocks performance since follow-on

www.tam.com.br/ir

IPO

Jun/14/2005

Follow-on

Mar/10/2006

TAMM4 TAMN IBOV DJBR20

Jun/30/2008

152%

68%

95%

0%

21

Maintain leadership in both domestic and

international markets

ASK growth of

Domestic 14%

International 40%

Average load factor at approximately 70% overall

Reduction of 7% in total CASK ex-fuel in BR GAAP

yoy

Three additional international destinations or

frequencies in 2008

Domestic market demand growth from 8% to 12% (in

RPK terms)

2008 Guidance

We have a positive outlook for 2008

TAM

Market

Jan – Jul 2008

10.0%

49.3% dom

70.9% intl

13.7%

33.0%

72.2%

-4.5%*

Rio de Janeiro – Miami

Lima (Peru)

* Accumulated from January to June, 2008

22

4

2

16

101

4

2

18

104

4

2

20

110

4

2

22

113

8

2

22

115

2008 2009 2010 2011 2012

123128

136141

147

0

50

100

150

Total fleet

Our growth plan is supported by a flexible fleet plan

B767 Airbus wide-body Airbus narrow-bodyB777

23

To be the preferred airline company

Excellence

in Technical-

Operational

Excellence

in Service

Excellence

in

Management

We signed a commitment

PASSION FOR AVIATION

24

São Paulo, August 14, 2008

2Q08

Results Presentation